The Conservative Party

[Nethermoor]

Raising the threshold or even tweaking the rates is fine, but the tax does incentivise those with lots of money to seek out ways to minimise IT - for example investing in the Alternative Investments Market which helps fund small to medium sized UK companies and generate growth. Shares held in AIM listed companies are exempt from IT.

Immense wealth stagnating in the hands of a few and doing nothing is not healthy. Freeing up this money or incentivising people to invest some of their wealth in the economy is sensible.

Yeh. I've just posted above my Grandad died a few months back and his house is worth £700k and with his savings and stuff he has about 800k. My Dad and Aunt thought they would have to pay tax on anything over 325 but the solicitors have told them due to my Gran dying a few years earlier the threshold is higher.

Imagine working yourself to the bone then dying and the government taking yet more tax.

 

[Nethermoor]

Sorry should have added the % to answer your Q
tax?

The key points from this year's publication are: In the tax year 2020 to 2021, 3.73% of UK deaths resulted in an Inheritance Tax ( IHT ) charge, decreasing by 0.03 percentage points since the tax year 2019 to 2020.26 Jul 2023

Thanks for explaining. Makes more snese now.

 

[BeerIsTheBest]

Raising the threshold or even tweaking the rates is fine, but the tax does incentivise those with lots of money to seek out ways to minimise IT - for example investing in the Alternative Investments Market which helps fund small to medium sized UK companies and generate growth. Shares held in AIM listed companies are exempt from IT.

Immense wealth stagnating in the hands of a few and doing nothing is not healthy. Freeing up this money or incentivising people to invest some of their wealth in the economy is sensible.

Totally agree but why not just raise the IHT threshold?

The proposals to decrease the gains made from investments by folk like you describe via additional tax on Capital Gains was slipped in just before a recess this year. It’s had no big publicity or gvmt headlines for obvious reasons.

Similarly the gvmt proposal to remove the right for hard workers who’ve saved into a pension to pass all their pension onto a dependant tax free in the event that they die before age 75 has had no publicity.

Its a game and the IHT is just a headline. Who is this going to benefit - the c4% with the most assets.

Just be fair- raise the threshold on IHT to a £million or whatever

 

[TinFoilHat]

Tory Policy HQ:
"Let's float the idea of getting rid of inheritance tax to gauge reaction."


Few days later:
"Well that's a bit of shitshow. Put out were gonna put the army on the streets to help the police thus showing we must leave the ECHR. Suella will push it pre conference and see how that floats...."

 

[bluethrunthru]

Lol

 

[Vic]

Sorry should have added the % to answer your Q
tax?

The key points from this year's publication are: In the tax year 2020 to 2021, 3.73% of UK deaths resulted in an Inheritance Tax ( IHT ) charge, decreasing by 0.03 percentage points since the tax year 2019 to 2020.26 Jul 2023

So a 24% increase means less than 1% more of the population is paying Inheritance tax?

 

[BrianW]

The real inheritance tax almost everyone has to pay is the stupid amount of money it costs to obtain probate.

Rather than worrying about the impact on 4% of the population who are very rich people why not focus on something that actually has an impact on almost everyone?

By the way, there is nothing new or socialist about the concept of inheritance tax. Even in The Middle Ages, you had to pay a 'relief' to inherit an estate.

 

[Vic]

Lol

Silly Henry. Didn't want to get his paint wet in the rain.

Better analogy would be Sunak the tank engine passing the "Danger: subsidence" sign and ending up as Sunak the Sunk Engine.

 

[BeerIsTheBest]

So a 24% increase means less than 1% more of the population is paying Inheritance tax?

Vic

I think so and doesn’t that make a compelling argument!!!!
IHT (and as earlier poster said Probate and solicitor type costs) are a bastard which I’ve experienced in the last few years.

There were 668,000 deaths in the United Kingdom in 2021 (can’t get more upto date figures and Covid would have skewed numbers upwards)
33,000 people paid IHT in the year 21/22

So 3/4% of folk who die leave an estate covered by IHT seems accurate.

This proposal seems like a big win for the wealthiest and a good headline.

Just raise the threshold before IHT is paid to exclude those dependants who probably need it more and exclude those with most to gain. Why is this too difficult to do?

 

[denislawsbackheel]

Good. Not often I agree with this lot, but current inheritance tax laws are terrible.

Why?